The 2008 shock was certainly violent, but the reactions of the system, countries and central banks with their bailouts on an unprecedented scale, managed to hide the worst consequences:

downgrading of the West in general and the United States in particular, a forced cleanup of the economy, a heavy fall from an artificial standard of living, mass unemployment, the beginning of social unrest… have been able to be partly neglected in favour of recovery hopes kept alive by irresponsible policies diverting liquidity to the banking systems and stock exchanges.

Sadly, whilst the world drugged itself, global issues weren’t addressed… five lost years: the building is even less strong than before the crisis; the US “solution” orchestrated by the Fed, that everyone else left it to manage to take the time to dress their own wounds, has been to put out with gasoline the fire which they themselves lit.

It’s not surprising then that it is still the US, pillar of the world before, refusing to fall in line, with their faithful Japanese and British floats, which is once again igniting the world situation. And this time, we shouldn’t rely on bankrupt countries to save the situation: they are on their knees following the first shock in 2008.

Therefore, it’s actually a second world crisis which is looming, once again caused by the United States. Ultimately this five-year period will have been nothing other than taking a step back to enter into an even bigger crisis, which we have called “the crisis squared” … //

Link: Billions in Debt, Detroit Tumbles Into Insolvency, on The New York Times, by MONICA DAVEY and MARY WILLIAMS WALSH, July 18, 2013: Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, filed for bankruptcy on Thursday, the largest American city ever to take such a course … (full long 2 pages text).

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on Monday, July 22nd, 2013 at 2:11 am and is filed under politics.